Vudu Reveals Open-Source RIA Platform, But is it Enough to Survive Heavy Competition?

In something of a surprise announcement earlier today, streaming video hardware-maker Vudu released a standards-based platform for its set-top box.

It’s a daring attempt to bring the expertise of web-based third-party developers to box-based ‘consumer appliances.’ We know what they’re thinking: Hey, it worked for Apple’s iPhone with the App Store didn’t it?

Vudu’s RIA (Rich Internet Application) project combines the powers of open-source development to a hardware machine that already did some cool things, like up-converting video to HD quality. The goal of the RIA is to create a facile TV portal for web-based content, something a few other companies have tried with mixed results.

Vudu says that the first set of web applications available are a few "casual games," access to Flickr, Picasa, and YouTube, as well as an on-demand TV option with more than 120 channels, including major networks like NBC and CNN. However, the full RIA won’t be open to developers until later next year.

Edward Lichty, executive VP for Vudu says the new service will be the best way to connect to web services via the TV: “Vudu RIA enables us to quickly open up huge libraries of Web-based content to TVs," while noting that by using Vudu’s high-end user interface and control navigation, as well as its patented TruFilm video render technology (which is quite good), it will offer the best full-media option.

If all this sounds like a company desperately trying to stay relevant, you’re right. Still, these options might not be enough for the company to move back to the front of the pack.

Last year, the Vudu box achieved critical acclaim due to the innovative tech that borrowed from web-based sharing models of the past: the box stores a tiny piece of each movie on its hard drive, and then sends the bit out to other users when called upon. This allowed quality video to download quickly, and the ease of use of the UI was also a step ahead.

This year, however, has led to a significant buzz-drop due to heavy competition. Roku’s Netflix box and the AppleTV grew their service by focusing on improved download speeds, better prices, and most significantly, better content deals.

Yes, the Apple TV streams media from networked Macs (and Windows PCs), allows you to rent movies and TV shows, and has access to YouTube videos and Flickr, but it’s the funnel-like access to the large library offered by the iTunes store that made it an attractive option. At the same time, this also proved limiting. Many file types couldn’t play on the box, and prices for iTunes HD movies fell a bit on the pricey side.

The Roku, on the other hand, used the large subscriber base of Netflix to roll out a quick launch and its quality movie streaming (instead of downloading) was the ‘the textbook definition of a simple setup.’ Combined with a nice $100 price, the box quickly became popular.

However, using the Roku means you are still tethered to the limited streaming options made available by Netflix (only 10% of its overall lineup), and you can’t access other net apps.

But the most important development in web video this year was the popularity of web-based services delivered via PC browsers, such as Hulu.com. Basically, they blew up and the video industry trembled in fear. In less than a year, Hulu went from a laughingstock to one of the most trafficked sites on the internet.

So if open/free web-based services are already the most popular, an open source project based on a box might not have a chance if the only thing it does is to serve as a UI caddy for web navigation. But as with a lot of these things, it depends on the software and the content available.

If Vudu’s up-converting special sauce improves upon web-based video, or finds an easier way to personalize content, it might be a worthy buy. And if it finds a way to deliver the very content getting in their way (like Hulu, Sling.com, and the rest of them), it might catch on with those who want access to quick movie rentals.

Finally, sacrificing themselves to the whims of web developers could produce unexpected hits in applications and games, just like the iPhone with the App Store.

With Roku’s box recently experiencing its first serious problems, and Apple TV offering no recent updates of note, the Vudu might still have a place in the video game after all. That is, if Apple or someone else doesn’t get there first, before developers have a chance to have their say.